Budget: A housewife's ready reckoner

Indirect taxes have an impact on your monthly budget, as any rise or fall in these hits prices of goods.

This year, the government could announce a few measures relating to the Goods and Services Tax.

As the government moves closer to implementing GST, it remains to be seen whether it changes indirect tax rates.

Any increase in service tax or excise duty would raise prices of essential goods and have an impact on the household budget.

"Under GST, 16 per cent tax on services and 20 per cent on goods is proposed.

"So, it is likely in this year's Budget, if the government is under pressure to raise revenue, service tax might be increased from 12 per cent, while the excise tax on goods might remain the same," said Sachin Menon, partner, and national head-indirect taxes, KPMG.